Siemens planning to cut 1,000 more jobs

Siemens will cut 1,000 jobs at its telecom equipment unit on top of those already planned as it attempts to meet its profitability targets, an Associated Press report said.

Some 1,500 layoffs were already announced for the Munich-based unit Com in the first fiscal half of 2006 as the company tries to meet profitability margin targets of between 4% and 13% by 2007, the report said.

The company would not reveal financial details of the latest overhaul at Com, a division that had struggled to be profitable in recent quarters amid steep price declines for network equipment that had been fueled by fierce competition, the report said.

According to the report, Siemens said the job cuts would be made in Germany.

Com's operating profit in the second quarter fell 75% to 27 million euros ($33.9 million) from 108 million euros ($136.3 million) over the same period in the previous year, while sales rose 7% to 3.38 billion euros ($4.24 billion) from 3.16 billion euros ($4.2 billion).

As of the end of September 2005, Siemens' Com unit had a total of 54,500 employees in 160 countries, the report said.